BNSF announces $5 billion capital commitment program

FORT WORTH, Tex.–BNSF Railway Company (BNSF) announced a new single-year record capital commitment plan of approximately $5 billion for 2014, approximately a $1 billion increase over its 2013 capital spend.

The largest component of the capital plan is spending $2.3 billion on BNSF’s core network and related assets. BNSF also plans to spend approximately $1.6 billion on locomotive, freight car and other equipment acquisitions, said a company release. In addition, the program includes about $200 million for continued installation of positive train control (PTC) and approximately $900 million for terminal, line and intermodal expansion and efficiency projects.

BNSF’s expansion and efficiency projects will be primarily focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive, and industrial products volumes related to crude oil production, and other terminal improvements to enhance productivity and velocity. More than $900 million of the capital plan is for expansion and maintenance in the Northern Corridor.

“Our capital plan continues to focus on improving our ability to meet our customers’ service expectations, increasing our capacity where there is growth, and strengthening our railroad to help ensure it remains the safest means of ground transportation for freight,” said Carl Ice, president and chief executive officer of BNSF Railway.